5 Best Canadian Stocks to Buy and Hold

3. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 61

UBS recently talked in detail about how generative AI would positively impact softline fashion retail companies. The firm thinks generative AI would help companies decrease their marketing spending and optimize their efforts to boost sales. One example of how generative AI could help boost sales is by creating personalized messages at checkouts for customers based on their history to urge them complete their buying process. Lululemon Athletica Inc. (NASDAQ:LULU) was one of the stocks which UBS believes would enjoy gains from the generative AI boom.

Kinsman Oak Capital Partners made the following comment about Lululemon Athletica Inc. (NASDAQ:LULU) in its first quarter 2023 investor letter:

“What is relatively new, however, is that we are beginning to see substantial write-downs and impairment charges. For instance, Lululemon Athletica Inc. (NASDAQ:LULU) is already exploring a sale of Mirror, the struggling fitness technology company it bought less than three years ago for half a billion dollars. Lululemon executives recently announced a $433 million impairment charge on the business (-89%). That is not an insignificant amount of money.”